Endowment Shortfall

hindsight63

My wife and I were sold an endowment mortgage 20 years ago for the mortgage sum of £12,500. The mortgage is due to mature at the end of this month, June 2014. The investment company have contacted us recently to inform us that the shortfall will be around £6300. We had, like others, made a claim previously against the mis-selling of the mortgage and were awarded £1500. My concern now is that the shortfall appears excessive for the amount of original mortgage borrowed. Can anyone give advice on this and if a further claim can be made.

aggypanthus

It does seem very high. to compare, my shortfall is around 8-9 k on 30k loan.
I dont think another claim is possible as it has already been dealt with.

dunstonh

Can anyone give advice on this and if a further claim can be made.

No. This increased shortfall is your fault. No-one else. You could claim against yourself

The redress calculation that saw you paid £1500 was the amount required to put you in the position you would have been had you had a repayment mortgage. You should then have surrendered the endowment policy and paid the surrender value and the £1500 off the mortgage and convert to repayment basis. That way, you would not have a shortfall now. However, for whatever reason, you chose to remain on endowment basis instead and decided to stick with the risk and in this case the risk has not paid off.

haras_nosirrah

It's taken you 20 years to pay £6,000? You have had very very cheap living for the last 20 years. Why did you not start overpaying when it became clear the endowment wouldn't clear it. You will now have to make arrangements to clear the rest. Will the lender increase the term but on a repayment mortgage?